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Fisheries and Aquaculture in Chile January 2021

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Fisheries and Aquaculture in Chile January 2021 Globally, fisheries and aquaculture production is an important source of accessible nutritious food, and abasisof livelihoods. It is also a key driver of coastal and rural economic well-being. However, overfishing, illegal fishing and the combined effects of ocean-based activities and climate change on resources and ecosystems put the sector atrisk and undermine the resilience of those relying on it in many places. Improving fisheries and aquaculture management is crucial to ensure future generations continue to benefit from Ocean resources and ecosystem services. The country notes of the OECD Review of Fisheries 2020 present each country’s situation in brief and identify best policy practices and reform pathways. These notes can also inform dialogue on progress towards internationally- adopted goals and targets with respect to sustainable fisheries and aquaculture management and support policies. Overview of the sector Fisheries and aquaculture production In 2018, Chile produced 3.7 million tonnes of fish (including molluscs and crustaceans), with a value of USD 11544.1 million. 91% of this value came from aquaculture and 9% from fisheries (that is, the capture of wild resources). Between 2008 and 2018, the quantity produced decreased by 24%, while its value increased by 70%. Figure 1: Fisheries and aquaculture’s contribution to seafood production Aquaculture Marine fisheries Total Seafood production volume, Million t Seafood production value, USD Millions 6 5 10,000 4 3 5,000 2 1 0 0 2005 2007 2009 2011 2013 2015 2017 2005 2007 2009 2011 2013 2015 2017 Source: FAO dataset ‘Global Fishery and Aquaculture Production Statistics’ (FishStatJ); OECD dataset ‘Marine landings’ (OECD.Stat). Note: Seafood production volume is expressed in live weight tonnes. The value of aquaculture production is estimated based on unit value by live weight tonne, while the value of marine fisheries refers to the value of landings. Production and trade in the global context Chile is a net exporter of fish and fish products. Between 2008 and 2018, exports increased by a total of 65%, while imports increased by 48%. Figure 2: Trade in fish and fish products Export Import In 2018 Million USD 2.775% Share of global fisheries production volume 6,000 1.124% Share of global aquaculture production volume 4,000 4.348% Share of global fisheries and aquaculture exports 2,000 0.285% Share of global fisheries and aquaculture imports 1995 2000 2005 2010 2015 2018 Source: Trade data (UN Comtrade; WITS - World Integrated Trade Solution - the list of commodities included is specified in the OECD dataset ‘International trade of fisheries products’, OECD.stat) and FAO dataset ‘Fishery and Aquaculture Production Statistics’ (FishStatJ). Employment and fleet In 2018 Employment in the seafood sector, including processing, accounted for 169622 jobs. This represented 2% more jobs than in 2008. Over the same period, the average value of production per employee decreased by 63% in marine fisheries and increased by 162% in aquaculture. In 2017, the fleet consisted of 13935 powered vessels, down by 9% since 2007. Small-scale vessels, those below 12 meters in length, accounted for 78.5% of the total number of vessel. The total gross tonnage of the Chilean fleet in 2017 was 175172 tonnes. Small-scale vessels accounted for 16.3% of the total gross tonnage. Figure 3: Employment by sub-sector Figure 4: Fleet size by fleet segment Capture fisheries <12m 24−45m Length unspecified Aquaculture 12−24m >45m Processing Number of vessels Gross tonnage (gt) Thousand jobs 16,000 150,000 150,000 12,000 100,000 100,000 8,000 50,000 50,000 4,000 0 0 0 2008 2018 2007 2017 2007 2017 Source: OECD datasets ‘Employment’ and ‘Fishing fleet’ (OECD.Stat). OECD Review of Fisheries Country Notes | January 2021 2 Government support to fisheries Governments provide support to their fisheries sectors through a wide range of policies. The objectives varybut tend to centre on goals such as maintaining employment, improving fishers’ welfare, or ensuring the sustainability of the sector and the resources it relies on. Usually, government finance services to the fisheries sector, which benefit the sector as a whole or some of its segments, and also provide direct support to individuals and companies. Financing of services to the fisheries sector In 2017, Chile spent CLP 7709 million (USD 11.9 million) financing services to the fisheries sector while CLP 0 million (USD 0 million) was recouped via cost-recovery charges, that is, fees paid by service users, such as for port access or management, and taxes or fees on resource use and associated profits. Having the sector bear some of the cost of services, reduces the extent to which taxpayers finance it. Net of cost-recovery charges, the public cost of services to the fisheries sector amounted to 0.7% of the value of production, while the OECD average was 8.9% in 2017. The intensity of fisheries services financing relative to fleet sizewas USD 67.8 per gross tonne (gt) of total fleet capacity in 2017. This compares with an OECD average of USD 668.6 per gt in 2017. Some services to the sector aim to ensure its sustainability or improve fishing communities’ well-being, while only indirectly supporting the intensity of fishing activities. In the OECD, such services, including manage- ment, control and surveillance, accounted for an average of 60.1% of spending on services to the sector in 2017. Other services target fishers’ ability to operate their businesses more efficiently or more sustainably, such as investment in education and training, marketing and promotion or research and development. These services accounted for an average of 14.3% of spending on services to the sector in the OECD in 2017. Finally, some forms of support can have a more direct relationship with production capacity, such as investment in or subsidised access to infrastructure like ports. In the OECD, these services have accounted for an average of 23.5% of financing of services to the sector in 2017. Figure 5: Financing of services to the fisheries sector, 2017 Chile OECD average Infrastructure Management, Control & Surveillance Research & Development Education & Training Fishing communities Marketing & Promotion Access to foreign waters Other 0 100 200 300 400 USD/gt Source: OECD datasets ‘Fisheries Support Estimate (FSE)’ and ‘Fishing fleet’ (OECD.Stat). Note: Figure uses the latest data reported by Chile (2017) and OECD average for 2017. OECD Review of Fisheries Country Notes | January 2021 3 Direct support to individuals and companies in the fisheries sector In 2018, Chile provided support totalling CLP 2397.6 million (USD 3.7 million) through policies directly ben- efiting individuals and companies in the fisheries sector1, up by a total of 957% since 2010. This amounted to 0.4% of the value of production. A common objective of direct support policies is to maintain or increase the incomes of fishers. Relative to employment, direct support to individuals and companies increased by 661% since 2010, reaching USD 41.7 per fisher in 2018. Direct support to individuals or companies originates in a variety of policies. Some payments can be partially de-coupled from fishing activities, such as income support, special insurance systems. Chile spent USD 0 per fisher on these types of policies in 2018. In the OECD, the average spending per fisher was USD 496.8in2018. Benefits can also be given in exchange for capacity reduction, such as through decommissioning schemes or payments for early retirement. Other policies are directed at lowering the cost of inputs. These include support for fuel, for other variable inputs (like payments to reduce the cost of ice or bait) and for fixed inputs (such as support to vessel construction and modernization or to the purchase of gear). In 2018, Chile spent USD 41.7 per fisher on policies lowering the cost of inputs. The impact of support policies varies depending both on the type of policy and the effectiveness of fisheries management. For example, OECD work has shown that support to fuel is one of the least effective means of transferring income to fishers; while policies lowering the cost of inputs more generally are the mostlikely to provoke overcapacity, overfishing and illegal, unreported and unregulated (IUU) fishing. OECD analysis hasalso demonstrated that support policies generally benefit fishers more and are less likely to encourage unsustainable fishing when an effective management system is in place (e.g. when total allowable catch limits areused). Figure 6: Intensity of direct support to individuals and companies relative to employment, 2018 Chile OECD average Other Fixed inputs Other variable inputs Fuel* Capacity reduction Insurance Income 0 100 200 300 400 USD/fisher Source: OECD datasets ‘Fisheries Support Estimate (FSE)’ and ‘Employment’ (OECD.Stat) Notes: Figure uses the latest data reported by Chile (2018) and OECD average for 2018. *In the OECD dataset ‘Fisheries Support Estimate (FSE)’ (OECD.Stat), there are two different types of support to fuel, tax concessions and direct transfers to reduce the cost of fuel. Since impacts are similar, they are jointly considered as support to fuel. Tax concession to fuel are often not specific to fisheries, as the same policies sometimes also apply to other sectorssuch as agriculture, a number of countries and economies reporting to the FSE database do not include it in their reporting, which affects the relative total support to inputs. 1In Chile this support only targets small-scale fisheries OECD Review of Fisheries Country Notes | January 2021 4 Sustainable fisheries management With the adoption of Sustainable Development Goal 14 (SDG 14) of the 2030 Agenda for Sustainable Develop- ment, member countries of the United Nations (UN) agreed to end overfishing by 2020 and effectively regulate fishing activities on the basis of science.
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